From Inc · · 1m 30s
California cuts Uber insurance coverage to $60,000
California's new law slashes Uber riders' crash insurance to $60,000 per person.
In brief
California's new law slashes Uber riders' crash insurance to $60,000 per person. California's law reduces Uber riders' uninsured motorist coverage from $1 million to $60,000 per person, shifting costs to employees and insurers. Originally reported by Inc.
California insurance coverage cut
California reduced Uber riders' uninsured motorist coverage from $1 million to $60,000 per person ($300,000 per incident) in a law signed by Governor Newsom in October 2025.
Uber backed the law
Uber supported the law but claimed insurance savings would be passed to consumers without publishing fare data to back up the claim.
California's coverage cut impact
The cut shifts crash costs from rideshare platforms to employees, their insurers, and sometimes companies, as Uber bought back $3 billion of its stock in the same quarter.
Federal transportation bill amendment
A House committee added an amendment to the federal transportation bill to strip away vicarious liability, making rideshare companies liable only for gross negligence.
Texas rideshare coverage
Texas law allows Uber to have no uninsured motorist coverage, so riders get nothing if the driver isn't at fault, but still have Uber's $1 million policy for crashes during trips.
Robotaxis face thin coverage
Waymo and Tesla's robotaxis in Texas inherit the same thin coverage as Uber, operating under a 2025 Texas law that treats them as rideshare companies.
Three moves for companies
Companies should tell employees not to waive coverage, lock down fault evidence early, and opt out of robotaxi arbitration to protect against thin coverage.
The bottom line
California's law reduces Uber riders' uninsured motorist coverage from $1 million to $60,000 per person, shifting costs to employees and insurers.
